The United Nations Development Programme has signed a new agreement with the Stellar Development Foundation following 16 months of blockchain payment pilots across multiple countries. According to UNDP, the agreement creates a framework for its country offices to use blockchain-based payments across more development programs after testing the technology in Haiti, Syria, Kenya, Guatemala, and The Gambia, with additional projects completed in Colombia and Papua New Guinea. As per AMBCrypto, the initial test pilot with Stellar on digital payments and tracking will now enter a new scaling phase to expand the reach of blockchain-based aid delivery.
During the pilot phase, UNDP reported significant operational improvements across different countries. In Syria, a Cash for Work program that recorded payments onchain reduced distribution costs from 10% to 2%. In Haiti, another pilot continued processing aid payments despite a cellular network outage, demonstrating the system's ability to operate even when conventional communications infrastructure was disrupted. According to AMBCrypto, the pilot tests achieved a 100% success rate in transfers, even in areas with poor cellular network coverage, proving the viability of blockchain rails in last-mile connectivity.
According to UNDP, the agency will now move from country-specific trials toward a standardized process that allows local offices to deploy blockchain payments where appropriate. The organization stated the initiative is intended to improve the delivery of financial assistance while supporting development programs in regions with limited banking access. As per AMBCrypto, UNDP Alternative Finance Lab's Robert Pasicko emphasized that digital payments can reach the people that conventional systems miss, and in some of the hardest places to operate. Alongside payment expansion, UNDP launched a Blockchain Advisory Group last month to guide future blockchain adoption across its development work, examining applications beyond digital payments including digital public infrastructure and public service modernization.
The UNDP agreement adds to recent developments that have expanded Stellar's presence in financial infrastructure. Earlier this month, MoneyGram introduced its US dollar stablecoin MGUSD on the Stellar blockchain, with the rollout beginning in the United States before expanding internationally through its network of more than 60 million active customers. In May, the Depository Trust & Clearing Corporation (DTCC) partnered with the Stellar Development Foundation to develop DTC custody asset tokenization services on the Stellar public blockchain, with the first tokenized assets scheduled to go live during the first half of 2027. For Stellar's Legal Chief Candace Kelly*, the results prove the viability of blockchain rails in last-mile connectivity, built around the realities of the last mile infrastructure.
